U.S. Democrats propose $25 billion in loans for automakers
Güncelleme Tarihi:
Senate Democrats took the first step toward bailing out the nation's crippled auto industry on Monday by proposing a $25 billion loan program as lawmakers prepare for a showdown over expanding the government's role in shoring up the economy.
With the year's congressional calendar down to a few days, lawmakers and the Bush administration sparred over the best way to extend help to General Motors Corp, Ford Motor Co and Chrysler LLC.
President-elect Barack Obama and congressional Democratic leaders are pushing for the aid.
But with President Bush and many Republicans expressing skepticism, the prospects are uncertain at best for action before the lame-duck session of Congress ends.
The bailout, in the form of emergency loans, is in addition to a $100-billion stimulus plan from Senate Democrats that includes aid to revenue-strapped states, extension of jobless benefits, funding for infrastructure projects, energy assistance to low-income families and help for families at risk of foreclosure.
But prospects are even dimmer for those additional stimulus proposals, and Senate Majority Leader of Democrats Harry Reid said he would try to pass the automaker aid separately if the broader package failed. A vote could come Wednesday.
"We're seeing a potential meltdown in the auto industry with consequences that could impact directly upon millions of American workers and cause further devastation to our economy," Reid told colleagues.
The White House said they are "surprised" with the proposal. "We're surprised that Senate Democrats would propose a bailout that fails to require automakers to make the hard decisions needed to restructure and become viable," White House spokeswoman Dana Perino said.
AUTO CHIEFS IN HOTSEAT
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The chairmen and CEOs of General Motors, Ford and Chrysler will testify to the Senate Banking, Housing and Urban Affairs Committee as Democrats mount a long-odds bid to pass the 25-billion-dollar rescue package.
Their testimony, to be followed by an appearance before a House of Representatives panel Wednesday, comes with millions of jobs threatened as the industry's crippling losses are exacerbated by the deepening economic crisis.
Ford CEO Alan Mulally, Chrysler boss Robert Nardelli and Richard Wagoner of General Motors will testify to the committee, under the chairmanship of Democrat Chris Dodd who has already cast doubt a bailout can pass this week.